Texas | 0-12247 | 75-1848732 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1201 S. Beckham, Tyler, Texas | 75701 | |
(Address of principal executive offices) | (Zip Code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
p | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
p | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
p | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
p | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(D) | Exhibits. The following materials are furnished as exhibits to this Current Report on Form 8-K: |
Exhibit Number | Description of Exhibit | ||
99.1 |
Southside Bancshares, Inc. | ||
Date: July 28, 2017 | By: | /s/ JULIE N. SHAMBURGER |
Julie N. Shamburger | ||
Senior Executive Vice President and Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
SOUTHSIDE BANCSHARES, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
As of | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 56,033 | $ | 54,345 | $ | 59,363 | $ | 54,255 | $ | 45,663 | |||||||||
Interest earning deposits | 175,039 | 185,289 | 102,251 | 144,833 | 18,450 | ||||||||||||||
Federal funds sold | 4,760 | 7,360 | 8,040 | — | — | ||||||||||||||
Securities available for sale, at estimated fair value | 1,397,811 | 1,444,043 | 1,479,600 | 1,622,128 | 1,416,335 | ||||||||||||||
Securities held to maturity, at carrying value | 925,538 | 929,793 | 937,487 | 775,682 | 784,925 | ||||||||||||||
Federal Home Loan Bank stock, at cost | 61,561 | 61,305 | 61,084 | 51,901 | 47,702 | ||||||||||||||
Loans held for sale | 3,036 | 5,303 | 7,641 | 5,301 | 5,883 | ||||||||||||||
Loans | 2,610,198 | 2,538,918 | 2,556,537 | 2,483,641 | 2,384,321 | ||||||||||||||
Less: Allowance for loan losses | (19,241 | ) | (18,485 | ) | (17,911 | ) | (15,993 | ) | (14,908 | ) | |||||||||
Net loans | 2,590,957 | 2,520,433 | 2,538,626 | 2,467,648 | 2,369,413 | ||||||||||||||
Premises & equipment, net | 105,938 | 105,327 | 106,003 | 106,777 | 107,242 | ||||||||||||||
Goodwill | 91,520 | 91,520 | 91,520 | 91,520 | 91,520 | ||||||||||||||
Other intangible assets, net | 3,767 | 4,177 | 4,608 | 5,060 | 5,534 | ||||||||||||||
Bank owned life insurance | 99,011 | 98,377 | 97,775 | 97,002 | 96,375 | ||||||||||||||
Other assets | 63,511 | 148,977 | 69,769 | 42,796 | 45,886 | ||||||||||||||
Total assets | $ | 5,578,482 | $ | 5,656,249 | $ | 5,563,767 | $ | 5,464,903 | $ | 5,034,928 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Noninterest bearing deposits | $ | 757,353 | $ | 753,224 | $ | 704,013 | $ | 747,270 | $ | 679,831 | |||||||||
Interest bearing deposits | 2,866,720 | 2,952,072 | 2,829,063 | 2,834,117 | 2,890,418 | ||||||||||||||
Total deposits | 3,624,073 | 3,705,296 | 3,533,076 | 3,581,387 | 3,570,249 | ||||||||||||||
Short-term obligations | 1,024,257 | 960,730 | 873,615 | 720,634 | 385,717 | ||||||||||||||
Long-term obligations | 320,658 | 411,310 | 601,464 | 621,640 | 559,071 | ||||||||||||||
Other liabilities | 62,429 | 47,447 | 37,338 | 68,682 | 47,591 | ||||||||||||||
Total liabilities | 5,031,417 | 5,124,783 | 5,045,493 | 4,992,343 | 4,562,628 | ||||||||||||||
Shareholders' equity | 547,065 | 531,466 | 518,274 | 472,560 | 472,300 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 5,578,482 | $ | 5,656,249 | $ | 5,563,767 | $ | 5,464,903 | $ | 5,034,928 |
At or For the Three Months Ended | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||
Income Statement: | |||||||||||||||||||
Total interest income | $ | 46,009 | $ | 44,888 | $ | 43,680 | $ | 41,132 | $ | 41,089 | |||||||||
Total interest expense | 10,585 | 9,608 | 9,039 | 7,202 | 6,711 | ||||||||||||||
Net interest income | 35,424 | 35,280 | 34,641 | 33,930 | 34,378 | ||||||||||||||
Provision for loan losses | 1,346 | 1,098 | 2,065 | 1,631 | 3,768 | ||||||||||||||
Net interest income after provision for loan losses | 34,078 | 34,182 | 32,576 | 32,299 | 30,610 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Deposit services | 5,255 | 5,114 | 5,183 | 5,335 | 5,099 | ||||||||||||||
Net (loss) gain on sale of securities available for sale | (75 | ) | 322 | (2,676 | ) | 2,343 | 728 | ||||||||||||
Gain on sale of loans | 505 | 701 | 461 | 818 | 873 | ||||||||||||||
Trust income | 899 | 890 | 900 | 867 | 869 | ||||||||||||||
Bank owned life insurance income | 635 | 634 | 649 | 656 | 647 | ||||||||||||||
Brokerage services | 682 | 547 | 466 | 551 | 535 | ||||||||||||||
Other | 1,392 | 1,465 | 1,730 | 1,162 | 619 | ||||||||||||||
Total noninterest income | 9,293 | 9,673 | 6,713 | 11,732 | 9,370 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 14,915 | 15,919 | 16,194 | 15,203 | 14,849 | ||||||||||||||
Occupancy expense | 2,897 | 2,863 | 2,825 | 4,569 | 2,993 | ||||||||||||||
Advertising, travel & entertainment | 548 | 583 | 648 | 588 | 722 | ||||||||||||||
ATM and debit card expense | 889 | 927 | 820 | 868 | 736 | ||||||||||||||
Professional fees | 1,050 | 939 | 982 | 1,148 | 1,478 | ||||||||||||||
Software and data processing expense | 688 | 725 | 687 | 736 | 739 | ||||||||||||||
Telephone and communications | 476 | 526 | 572 | 407 | 468 | ||||||||||||||
FDIC insurance | 445 | 441 | 215 | 643 | 645 | ||||||||||||||
FHLB prepayment fees | — | — | — | — | 148 | ||||||||||||||
Other | 3,629 | 2,935 | 2,934 | 4,263 | 3,035 | ||||||||||||||
Total noninterest expense | 25,537 | 25,858 | 25,877 | 28,425 | 25,813 | ||||||||||||||
Income before income tax expense | 17,834 | 17,997 | 13,412 | 15,606 | 14,167 | ||||||||||||||
Income tax expense | 3,353 | 3,008 | 1,839 | 2,741 | 2,772 | ||||||||||||||
Net income | $ | 14,481 | $ | 14,989 | $ | 11,573 | $ | 12,865 | $ | 11,395 | |||||||||
Common share data: | |||||||||||||||||||
Weighted-average basic shares outstanding | 29,318 | 29,288 | 27,542 | 26,923 | 26,890 | ||||||||||||||
Weighted-average diluted shares outstanding | 29,519 | 29,504 | 27,731 | 27,080 | 27,013 | ||||||||||||||
Shares outstanding end of period | 29,344 | 29,306 | 29,261 | 26,939 | 26,912 | ||||||||||||||
Net income per common share | |||||||||||||||||||
Basic | $ | 0.49 | $ | 0.51 | $ | 0.42 | $ | 0.48 | $ | 0.42 | |||||||||
Diluted | 0.49 | 0.51 | 0.42 | 0.48 | 0.42 | ||||||||||||||
Book value per common share | 18.64 | 18.14 | 17.71 | 17.54 | 17.55 | ||||||||||||||
Cash dividend paid per common share | 0.28 | 0.25 | 0.30 | 0.24 | 0.24 | ||||||||||||||
Selected Performance Ratios: | |||||||||||||||||||
Return on average assets | 1.04 | % | 1.08 | % | 0.83 | % | 0.98 | % | 0.90 | % | |||||||||
Return on average shareholders’ equity | 10.70 | 11.57 | 9.56 | 10.78 | 9.91 | ||||||||||||||
Average yield on earning assets (1) | 3.88 | 3.82 | 3.73 | 3.78 | 3.93 | ||||||||||||||
Average rate on interest bearing liabilities | 0.99 | 0.89 | 0.83 | 0.72 | 0.69 | ||||||||||||||
Net interest spread (1) | 2.89 | 2.93 | 2.90 | 3.06 | 3.24 | ||||||||||||||
Net interest margin (1) | 3.07 | 3.08 | 3.03 | 3.19 | 3.35 | ||||||||||||||
Average earning assets to average interest bearing liabilities | 121.57 | 120.04 | 119.88 | 120.40 | 120.21 | ||||||||||||||
Noninterest expense to average total assets | 1.83 | 1.87 | 1.85 | 2.17 | 2.05 | ||||||||||||||
Efficiency ratio (1) | 50.26 | 51.60 | 52.00 | 53.88 | 52.85 |
At or For the Six Months Ended | |||||||
June 30, | |||||||
2017 | 2016 | ||||||
Income Statement: | |||||||
Total interest income | $ | 90,897 | $ | 84,101 | |||
Total interest expense | 20,193 | 13,107 | |||||
Net interest income | 70,704 | 70,994 | |||||
Provision for loan losses | 2,444 | 6,084 | |||||
Net interest income after provision for loan losses | 68,260 | 64,910 | |||||
Noninterest income | |||||||
Deposit services | 10,369 | 10,184 | |||||
Net gain on sale of securities available for sale | 247 | 3,169 | |||||
Gain on sale of loans | 1,206 | 1,516 | |||||
Trust income | 1,789 | 1,724 | |||||
Bank owned life insurance income | 1,269 | 1,321 | |||||
Brokerage services | 1,229 | 1,110 | |||||
Other | 2,857 | 1,942 | |||||
Total noninterest income | 18,966 | 20,966 | |||||
Noninterest expense | |||||||
Salaries and employee benefits | 30,834 | 32,581 | |||||
Occupancy expense | 5,760 | 6,328 | |||||
Advertising, travel & entertainment | 1,131 | 1,407 | |||||
ATM and debit card expense | 1,816 | 1,448 | |||||
Professional fees | 1,989 | 2,816 | |||||
Software and data processing expense | 1,413 | 1,488 | |||||
Telephone and communications | 1,002 | 952 | |||||
FDIC insurance | 886 | 1,283 | |||||
FHLB prepayment fees | — | 148 | |||||
Other | 6,564 | 6,769 | |||||
Total noninterest expense | 51,395 | 55,220 | |||||
Income before income tax expense | 35,831 | 30,656 | |||||
Income tax expense | 6,361 | 5,745 | |||||
Net income | $ | 29,470 | $ | 24,911 |
Common share data: | |||||||
Weighted-average basic shares outstanding | 29,303 | 27,002 | |||||
Weighted-average diluted shares outstanding | 29,511 | 27,099 | |||||
Net income per common share | |||||||
Basic | $ | 1.01 | $ | 0.92 | |||
Diluted | 1.00 | 0.92 | |||||
Book value per common share | 18.64 | 17.55 | |||||
Cash dividend paid per common share | 0.53 | 0.47 |
Selected Performance Ratios: | |||||
Return on average assets | 1.06 | % | 0.99 | % | |
Return on average shareholders’ equity | 11.13 | 10.93 | |||
Average yield on earning assets (1) | 3.85 | 4.00 | |||
Average yield on interest bearing liabilities | 0.94 | 0.68 | |||
Net interest spread (1) | 2.91 | 3.32 | |||
Net interest margin (1) | 3.07 | 3.43 | |||
Average earning assets to average interest bearing liabilities | 120.80 | 119.91 | |||
Noninterest expense to average total assets | 1.85 | 2.19 | |||
Efficiency ratio (1) | 50.93 | 55.22 |
Southside Bancshares, Inc. | |||||||||||||||||||
Selected Financial Data (unaudited) | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||
Nonperforming assets: | $ | 9,165 | $ | 14,079 | $ | 15,105 | $ | 16,008 | $ | 24,510 | |||||||||
Nonaccrual loans (1) | 3,034 | 7,261 | 8,280 | 8,536 | 11,767 | ||||||||||||||
Accruing loans past due more than 90 days (1) | — | 1 | 6 | 1 | 6 | ||||||||||||||
Restructured loans (2) | 5,884 | 6,424 | 6,431 | 7,193 | 12,477 | ||||||||||||||
Other real estate owned | 233 | 367 | 339 | 237 | 237 | ||||||||||||||
Repossessed assets | 14 | 26 | 49 | 41 | 23 | ||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||
Nonaccruing loans to total loans | 0.12 | % | 0.29 | % | 0.32 | % | 0.34 | % | 0.49 | % | |||||||||
Allowance for loan losses to nonaccruing loans | 634.18 | 254.58 | 216.32 | 187.36 | 126.69 | ||||||||||||||
Allowance for loan losses to nonperforming assets | 209.94 | 131.29 | 118.58 | 99.91 | 60.82 | ||||||||||||||
Allowance for loan losses to total loans | 0.74 | 0.73 | 0.70 | 0.64 | 0.63 | ||||||||||||||
Nonperforming assets to total assets | 0.16 | 0.25 | 0.27 | 0.29 | 0.49 | ||||||||||||||
Net charge-offs to average loans | 0.09 | 0.08 | 0.02 | 0.09 | 1.77 | ||||||||||||||
Capital Ratios: | |||||||||||||||||||
Shareholders’ equity to total assets | 9.81 | 9.40 | 9.32 | 8.65 | 9.38 | ||||||||||||||
Average shareholders’ equity to average total assets | 9.72 | 9.36 | 8.66 | 9.10 | 9.11 |
(1) | Excludes purchased credit impaired ("PCI") loans measured at fair value at acquisition. |
(2) | Includes $3.0 million, $3.0 million, $3.1 million, $3.2 million, and $8.3 million in PCI loans restructured as of June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively. |
Three Months Ended | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||
Real Estate Loans: | |||||||||||||||||||
Construction | $ | 386,853 | $ | 362,367 | $ | 380,175 | $ | 466,323 | $ | 425,595 | |||||||||
1-4 Family Residential | 615,405 | 622,881 | 637,239 | 644,746 | 633,400 | ||||||||||||||
Commercial | 1,033,629 | 974,307 | 945,978 | 759,795 | 694,272 | ||||||||||||||
Commercial Loans | 172,311 | 176,908 | 177,265 | 191,154 | 197,896 | ||||||||||||||
Municipal Loans | 305,023 | 297,417 | 298,583 | 293,949 | 292,909 | ||||||||||||||
Loans to Individuals | 96,977 | 105,038 | 117,297 | 127,674 | 140,249 | ||||||||||||||
Total Loans | $ | 2,610,198 | $ | 2,538,918 | $ | 2,556,537 | $ | 2,483,641 | $ | 2,384,321 |
Average Balances with Average Yields and Rates | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
June 30, 2017 | March 31, 2017 | ||||||||||||||||||||
Avg Balance | Interest | Avg Yield/Rate | Avg Balance | Interest | Avg Yield/Rate | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Loans (1) (2) | $ | 2,557,093 | $ | 29,080 | 4.56 | % | $ | 2,549,230 | $ | 28,241 | 4.49 | % | |||||||||
Loans held for sale | 5,914 | 60 | 4.07 | % | 7,023 | 48 | 2.77 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Investment securities (taxable) (4) | 58,168 | 267 | 1.84 | % | 86,511 | 377 | 1.77 | % | |||||||||||||
Investment securities (tax-exempt) (3) (4) | 749,259 | 9,386 | 5.02 | % | 779,772 | 9,929 | 5.16 | % | |||||||||||||
Mortgage-backed and related securities (4) | 1,594,269 | 10,818 | 2.72 | % | 1,570,510 | 10,045 | 2.59 | % | |||||||||||||
Total securities | 2,401,696 | 20,471 | 3.42 | % | 2,436,793 | 20,351 | 3.39 | % | |||||||||||||
FHLB stock, at cost, and other investments | 66,744 | 299 | 1.80 | % | 66,547 | 298 | 1.82 | % | |||||||||||||
Interest earning deposits | 156,124 | 364 | 0.94 | % | 162,235 | 346 | 0.86 | % | |||||||||||||
Federal funds sold | 5,326 | 14 | 1.05 | % | 7,217 | 14 | 0.79 | % | |||||||||||||
Total earning assets | 5,192,897 | 50,288 | 3.88 | % | 5,229,045 | 49,298 | 3.82 | % | |||||||||||||
Cash and due from banks | 50,961 | 53,528 | |||||||||||||||||||
Accrued interest and other assets | 358,041 | 350,729 | |||||||||||||||||||
Less: Allowance for loan losses | (18,495 | ) | (18,130 | ) | |||||||||||||||||
Total assets | $ | 5,583,404 | $ | 5,615,172 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Savings deposits | $ | 262,009 | 121 | 0.19 | % | $ | 252,744 | 92 | 0.15 | % | |||||||||||
Time deposits | 1,014,101 | 2,723 | 1.08 | % | 927,610 | 2,227 | 0.97 | % | |||||||||||||
Interest bearing demand deposits | 1,616,036 | 2,294 | 0.57 | % | 1,707,996 | 1,962 | 0.47 | % | |||||||||||||
Total interest bearing deposits | 2,892,146 | 5,138 | 0.71 | % | 2,888,350 | 4,281 | 0.60 | % | |||||||||||||
Short-term interest bearing liabilities | 1,010,484 | 2,480 | 0.98 | % | 1,007,546 | 2,065 | 0.83 | % | |||||||||||||
Long-term interest bearing liabilities – FHLB Dallas | 210,416 | 1,075 | 2.05 | % | 301,775 | 1,402 | 1.88 | % | |||||||||||||
Subordinated notes (5) | 98,151 | 1,398 | 5.71 | % | 98,117 | 1,393 | 5.76 | % | |||||||||||||
Long-term debt (6) | 60,238 | 494 | 3.29 | % | 60,237 | 467 | 3.14 | % | |||||||||||||
Total interest bearing liabilities | 4,271,435 | 10,585 | 0.99 | % | 4,356,025 | 9,608 | 0.89 | % | |||||||||||||
Noninterest bearing deposits | 729,564 | 693,729 | |||||||||||||||||||
Accrued expenses and other liabilities | 39,819 | 39,960 | |||||||||||||||||||
Total liabilities | 5,040,818 | 5,089,714 | |||||||||||||||||||
Shareholders’ equity | 542,586 | 525,458 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,583,404 | $ | 5,615,172 | |||||||||||||||||
Net interest income (7) | $ | 39,703 | $ | 39,690 | |||||||||||||||||
Net interest margin on average earning assets (7) | 3.07 | % | 3.08 | % | |||||||||||||||||
Net interest spread (7) | 2.89 | % | 2.93 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | Interest income includes taxable-equivalent adjustments of $1,050 and $1,035 for the three months ended June 30, 2017 and March 31, 2017, respectively. See “Non-GAAP Financial Measures.” |
(3) | Interest income includes taxable-equivalent adjustments of $3,229 and $3,375 for the three months ended June 30, 2017 and March 31, 2017, respectively. See “Non-GAAP Financial Measures.” |
(4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(5) | The unamortized discount and debt issuance costs reflected in the carrying amount of the subordinated notes totaled approximately $1.8 million and $1.9 million for the three months ended June 30, 2017 and March 31, 2017, respectively. |
(6) | Represents issuance of junior subordinated debentures. In connection with the adoption of ASU 2015-03 that requires unamortized debt issuance costs be presented as a direct deduction from the related debt liability, our average long-term debt for the three months ended June 30, 2017 and March 31, 2017 reflect unamortized debt issuance costs of $73,000 and $74,000, respectively. |
(7) | See “Non-GAAP Financial Measures.” |
Three Months Ended | |||||||||||||||||||||
December 31, 2016 | September 30, 2016 | ||||||||||||||||||||
Avg Balance | Interest | Avg Yield/Rate | Avg Balance | Interest | Avg Yield/Rate | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Loans (1) (2) | $ | 2,512,820 | $ | 27,835 | 4.41 | % | $ | 2,436,349 | $ | 26,750 | 4.37 | % | |||||||||
Loans held for sale | 4,845 | 36 | 2.96 | % | 6,718 | 54 | 3.20 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Investment securities (taxable) (4) | 115,057 | 485 | 1.68 | % | 61,238 | 251 | 1.63 | % | |||||||||||||
Investment securities (tax-exempt) (3) (4) | 812,771 | 10,352 | 5.07 | % | 690,635 | 8,911 | 5.13 | % | |||||||||||||
Mortgage-backed and related securities (4) | 1,520,045 | 9,294 | 2.43 | % | 1,492,271 | 9,399 | 2.51 | % | |||||||||||||
Total securities | 2,447,873 | 20,131 | 3.27 | % | 2,244,144 | 18,561 | 3.29 | % | |||||||||||||
FHLB stock, at cost, and other investments | 62,087 | 210 | 1.35 | % | 54,085 | 186 | 1.37 | % | |||||||||||||
Interest earning deposits | 134,786 | 165 | 0.49 | % | 57,598 | 89 | 0.61 | % | |||||||||||||
Federal funds sold | 2,972 | 5 | 0.67 | % | — | — | — | ||||||||||||||
Total earning assets | 5,165,383 | 48,382 | 3.73 | % | 4,798,894 | 45,640 | 3.78 | % | |||||||||||||
Cash and due from banks | 52,415 | 49,418 | |||||||||||||||||||
Accrued interest and other assets | 359,217 | 385,917 | |||||||||||||||||||
Less: Allowance for loan losses | (16,467 | ) | (14,989 | ) | |||||||||||||||||
Total assets | $ | 5,560,548 | $ | 5,219,240 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Savings deposits | $ | 250,706 | 76 | 0.12 | % | $ | 248,364 | 71 | 0.11 | % | |||||||||||
Time deposits | 926,021 | 2,261 | 0.97 | % | 949,019 | 2,073 | 0.87 | % | |||||||||||||
Interest bearing demand deposits | 1,646,535 | 1,543 | 0.37 | % | 1,634,898 | 1,460 | 0.36 | % | |||||||||||||
Total interest bearing deposits | 2,823,262 | 3,880 | 0.55 | % | 2,832,281 | 3,604 | 0.51 | % | |||||||||||||
Short-term interest bearing liabilities | 869,398 | 1,428 | 0.65 | % | 608,130 | 1,122 | 0.73 | % | |||||||||||||
Long-term interest bearing liabilities – FHLB Dallas | 457,754 | 1,837 | 1.60 | % | 472,470 | 1,857 | 1.56 | % | |||||||||||||
Subordinated notes (5) | 98,011 | 1,439 | 5.84 | % | 12,823 | 189 | 5.86 | % | |||||||||||||
Long-term debt (6) | 60,235 | 455 | 3.01 | % | 60,234 | 430 | 2.84 | % | |||||||||||||
Total interest bearing liabilities | 4,308,660 | 9,039 | 0.83 | % | 3,985,938 | 7,202 | 0.72 | % | |||||||||||||
Noninterest bearing deposits | 717,599 | 702,539 | |||||||||||||||||||
Accrued expenses and other liabilities | 52,714 | 55,783 | |||||||||||||||||||
Total liabilities | 5,078,973 | 4,744,260 | |||||||||||||||||||
Shareholders’ equity | 481,575 | 474,980 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,560,548 | $ | 5,219,240 | |||||||||||||||||
Net interest income (7) | $ | 39,343 | $ | 38,438 | |||||||||||||||||
Net interest margin on average earning assets (7) | 3.03 | % | 3.19 | % | |||||||||||||||||
Net interest spread (7) | 2.90 | % | 3.06 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | Interest income includes taxable-equivalent adjustments of $1,045 and $1,064 for the three months ended December 31, 2016 and September 30, 2016, respectively. See “Non-GAAP Financial Measures.” |
(3) | Interest income includes taxable-equivalent adjustments of $3,657 and $3,444 for the three months ended December 31, 2016 and September 30, 2016, respectively. See “Non-GAAP Financial Measures.” |
(4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(5) | The unamortized discount and debt issuance costs reflected in the carrying amount of the subordinated notes totaled approximately $2.0 million and $220,000 for the three months ended December 31, 2016 and September 30, 2016, respectively. |
(6) | Represents issuance of junior subordinated debentures. In connection with the adoption of ASU 2015-03 that requires unamortized debt issuance costs be presented as a direct deduction from the related debt liability, our average long-term debt for the three months ended December 31, 2016 and September 30, 2016 reflect unamortized debt issuance costs of $76,000 and $77,000, respectively. |
(7) | See “Non-GAAP Financial Measures.” |
Three Months Ended | ||||||||||
June 30, 2016 | ||||||||||
Avg Balance | Interest | Avg Yield/Rate | ||||||||
ASSETS | ||||||||||
Loans (1) (2) | $ | 2,426,733 | $ | 27,275 | 4.52 | % | ||||
Loans held for sale | 4,984 | 40 | 3.23 | % | ||||||
Securities: | ||||||||||
Investment securities (taxable) (4) | 22,010 | 107 | 1.96 | % | ||||||
Investment securities (tax-exempt) (3) (4) | 657,568 | 8,636 | 5.28 | % | ||||||
Mortgage-backed and related securities (4) | 1,450,868 | 9,366 | 2.60 | % | ||||||
Total securities | 2,130,446 | 18,109 | 3.42 | % | ||||||
FHLB stock, at cost, and other investments | 52,952 | 185 | 1.41 | % | ||||||
Interest earning deposits | 57,493 | 61 | 0.43 | % | ||||||
Total earning assets | 4,672,608 | 45,670 | 3.93 | % | ||||||
Cash and due from banks | 47,079 | |||||||||
Accrued interest and other assets | 377,983 | |||||||||
Less: Allowance for loan losses | (22,377 | ) | ||||||||
Total assets | $ | 5,075,293 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
Savings deposits | $ | 244,639 | 68 | 0.11 | % | |||||
Time deposits | 976,600 | 1,927 | 0.79 | % | ||||||
Interest bearing demand deposits | 1,727,431 | 1,520 | 0.35 | % | ||||||
Total interest bearing deposits | 2,948,670 | 3,515 | 0.48 | % | ||||||
Short-term interest bearing liabilities | 385,858 | 906 | 0.94 | % | ||||||
Long-term interest bearing liabilities – FHLB Dallas | 492,296 | 1,874 | 1.53 | % | ||||||
Long-term debt (5) | 60,233 | 416 | 2.78 | % | ||||||
Total interest bearing liabilities | 3,887,057 | 6,711 | 0.69 | % | ||||||
Noninterest bearing deposits | 682,360 | |||||||||
Accrued expenses and other liabilities | 43,360 | |||||||||
Total liabilities | 4,612,777 | |||||||||
Shareholders’ equity | 462,516 | |||||||||
Total liabilities and shareholders’ equity | $ | 5,075,293 | ||||||||
Net interest income (6) | $ | 38,959 | ||||||||
Net interest margin on average earning assets (6) | 3.35 | % | ||||||||
Net interest spread (6) | 3.24 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | Interest income includes taxable-equivalent adjustment of $1,082 for the three months ended June 30, 2016. See “Non-GAAP Financial Measures.” |
(3) | Interest income includes taxable-equivalent adjustment of $3,499 for the three months ended June 30, 2016. See “Non-GAAP Financial Measures.” |
(4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(5) | Represents issuance of junior subordinated debentures. In connection with the adoption of ASU 2015-03 that requires unamortized debt issuance costs be presented as a direct deduction from the related debt liability, our average long-term debt for the three months ended June 30, 2016 reflects unamortized debt issuance costs of $78,000. |
(6) | See “Non-GAAP Financial Measures.” |
Average Balances with Average Yields and Rates | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||||
Avg Balance | Interest | Avg Yield/Rate | Avg Balance | Interest | Avg Yield/Rate | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Loans (1) (2) | $ | 2,553,183 | $ | 57,321 | 4.53 | % | $ | 2,430,783 | $ | 56,068 | 4.64 | % | |||||||||
Loans held for sale | 6,466 | 108 | 3.37 | % | 4,283 | 72 | 3.38 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Investment securities (taxable) (4) | 72,262 | 644 | 1.80 | % | 31,835 | 321 | 2.03 | % | |||||||||||||
Investment securities (tax-exempt) (3) (4) | 764,431 | 19,315 | 5.10 | % | 646,667 | 17,130 | 5.33 | % | |||||||||||||
Mortgage-backed and related securities (4) | 1,582,455 | 20,863 | 2.66 | % | 1,452,605 | 18,757 | 2.60 | % | |||||||||||||
Total securities | 2,419,148 | 40,822 | 3.40 | % | 2,131,107 | 36,208 | 3.42 | % | |||||||||||||
FHLB stock, at cost, and other investments | 66,646 | 597 | 1.81 | % | 54,034 | 402 | 1.50 | % | |||||||||||||
Interest earning deposits | 159,162 | 710 | 0.90 | % | 54,255 | 131 | 0.49 | % | |||||||||||||
Federal funds sold | 6,266 | 28 | 0.90 | % | — | — | — | ||||||||||||||
Total earning assets | 5,210,871 | 99,586 | 3.85 | % | 4,674,462 | 92,881 | 4.00 | % | |||||||||||||
Cash and due from banks | 52,237 | 51,406 | |||||||||||||||||||
Accrued interest and other assets | 354,283 | 373,998 | |||||||||||||||||||
Less: Allowance for loan losses | (18,313 | ) | (21,233 | ) | |||||||||||||||||
Total assets | $ | 5,599,078 | $ | 5,078,633 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Savings deposits | $ | 257,402 | 213 | 0.17 | % | $ | 240,066 | 133 | 0.11 | % | |||||||||||
Time deposits | 971,095 | 4,950 | 1.03 | % | 945,958 | 3,650 | 0.78 | % | |||||||||||||
Interest bearing demand deposits | 1,661,762 | 4,256 | 0.52 | % | 1,722,573 | 2,988 | 0.35 | % | |||||||||||||
Total interest bearing deposits | 2,890,259 | 9,419 | 0.66 | % | 2,908,597 | 6,771 | 0.47 | % | |||||||||||||
Short-term interest bearing liabilities | 1,009,023 | 4,545 | 0.91 | % | 399,922 | 1,602 | 0.81 | % | |||||||||||||
Long-term interest bearing liabilities – FHLB Dallas | 255,843 | 2,477 | 1.95 | % | 529,561 | 3,913 | 1.49 | % | |||||||||||||
Subordinated notes (5) | 98,134 | 2,791 | 5.74 | % | — | — | — | ||||||||||||||
Long-term debt (6) | 60,237 | 961 | 3.22 | % | 60,232 | 821 | 2.74 | % | |||||||||||||
Total interest bearing liabilities | 4,313,496 | 20,193 | 0.94 | % | 3,898,312 | 13,107 | 0.68 | % | |||||||||||||
Noninterest bearing deposits | 711,745 | 677,612 | |||||||||||||||||||
Accrued expenses and other liabilities | 39,768 | 44,247 | |||||||||||||||||||
Total liabilities | 5,065,009 | 4,620,171 | |||||||||||||||||||
Shareholders’ equity | 534,069 | 458,462 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,599,078 | $ | 5,078,633 | |||||||||||||||||
Net interest income (7) | $ | 79,393 | $ | 79,774 | |||||||||||||||||
Net interest margin on average earning assets (7) | 3.07 | % | 3.43 | % | |||||||||||||||||
Net interest spread (7) | 2.91 | % | 3.32 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | Interest income includes taxable-equivalent adjustments of $2,085 and $2,142 for the six months ended June 30, 2017 and 2016, respectively. See “Non-GAAP Financial Measures.” |
(3) | Interest income includes taxable-equivalent adjustments of $6,604 and $6,638 for the six months ended June 30, 2017 and 2016, respectively. See “Non-GAAP Financial Measures.” |
(4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(5) | The unamortized discount and debt issuance costs reflected in the carrying amount of the subordinated notes totaled approximately $1.9 million for the six months ended June 30, 2017. |
(6) | Represents issuance of junior subordinated debentures. In connection with the adoption of ASU 2015-03 that requires unamortized debt issuance costs be presented as a direct deduction from the related debt liability, our average long-term debt for the six months ended June 30, 2017 and 2016 reflect unamortized debt issuance costs of $74,000 and $79,000, respectively. |
(7) | See “Non-GAAP Financial Measures.” |